enabling the industry 4.0 vision: hype? real opportunity!

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© Fraunhofer · Seite 1 Prof. Dr. Boris Otto · Pune · October 7 th , 2015 ENABLING THE INDUSTRY 4.0 VISION: HYPE? REAL OPPORTUNITY!

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Page 1: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

© Fraunhofer · Seite 1

Prof. Dr. Boris Otto · Pune · October 7th, 2015

ENABLING THE INDUSTRY 4.0 VISION: HYPE? REAL OPPORTUNITY!

Page 2: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

© Fraunhofer · Seite 2

AGENDA

Towards a »Smart Service Welt«

Industry 4.0 and Smart Manufacturing

Data as the Key Resource

Page 3: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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adidas combines digital services and lot size 1 production

Source: Handelsblatt, August 6, 2015, No. 149; http://www.adidas-group.com/de/medien/newsarchiv/pressemitteilungen/2015/adidas-gruppe-erwirbt-runtastic/.

In-Store ProductionSmart Service »Runtastic«

Page 4: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Successful value propositions are becoming increasingly »hybrid«—as the example of adidas shows

Image sources: otto.de (2015), techglam.com (2015), soccerreviews.com (2015), appfullapk.co (2015).

Time

»Hybridity« Physical Product

(Running Shoe)

»Traditional Service«

(Work-Out Monitor)

Digital Service

(Runtastic)

Page 5: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Tool machine manufacturer TRUMPF wants to offer an AppStore around metal sheet processing

Tool Machine as Physical Asset Digital Value-Added Service

Source: http://www.de.trumpf.com/de/produkte/werkzeugmaschinen/services/software/trutops-boost/bedienphilosophie.html; https://www.media.trumpf.com/trumpfbdb/Object.jsp?web=bdb_press_free&obj_id=7675&view=image.

Page 6: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Digital products follow a platform architecture logic

Services can be separated from

physical platforms

Architectural layers are de-coupled

Products turn to platforms—and

vice-versa

Ecosystems form around platforms

Innovation happens in co-opetition

modes

Digital Business Architecture Principles of the Digital Economy

SMART PRODUCTS

SMART SPACES

SMART DATA

SMART SERVICES

Source: Working Group Smart Service Welt (2015).

Page 7: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Agricultural machinery manufacturers are driving comprehensive digital farming solutions

Precision Farming Value Creation in Ecosystems

Image sources: wiwo (2015), traction-magazin.de (2014).Source: Beecham Research Ltd. (2014).

Digital Farming

Ecosystem

Machine Providers

Crop Science Companies

Farmers

Wholesale

Technology Providers

Influencers

Page 8: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Source: Working Group Smart Service Welt (2015), Ernst & Young (2011).

The »Smart Service Welt« is a response to changing customer needs

End-to-End Customer Process

Individualization

Ubiquity of Service Consumption

Information Transparency

Page 9: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

© Fraunhofer · Seite 9

AGENDA

Towards a »Smart Service Welt«

Industry 4.0 and Smart Manufacturing

Data as the Key Resource

Page 10: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

© Fraunhofer · Seite 10

The implications on production and supply chain processes are tremendous

No. of Variants

Production Volume per

Variant

1850

1913

1955

1980

2000

Source: Koren (2010), cited in Bauernhansl (2014).Image sources: https://en.wikipedia.org (2015), https://www.impulse.de (2015), audi.de (2015), o2.co.uk (2015), computerbild.de (2015).

Ford Model T

VW Beetle

Production

Audi Configurator

Mass Production

Individualization

»Shareconomy«

Complexity

Globalization

iPhone

3D Printed Car

Page 11: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Thus, Industry 4.0 is a means to an end, not an end in itself—as the example of Audi shows

Individualization of customer demands ↑Number of models, variants, features ↑Product life-cycles ↓Globalization of processes ↑

Process and product complexity ↑Cost targets ↗Decision needs (strategic, tactical, operational) ↑

»Autonomization« of manufacturing ↑Real-time information availability ↑Interoperability of production systems ↑

Market and Customer Demands

Manufacturing and Logistics

Implications and Needs for Action

Industry 4.0

Page 12: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Industry 4.0 enables smart manufacturing through cyber-physical systems and decentralized control

Solution Components

Cyber-physical systems

Self-configuration

Virtual representation

Context-aware information management

Benefits

Increased flexibility and agility

Coping with complexityNew customer order: We need an extra shift on Saturday.

I need to go home now. Who can take over my

orders?

I have to be at the goods issue in 2 hours!

I‘m booked out till Friday!

Sorry, I‘m not available on Saturday.

I can work on Saturday.

Magazine will be empty soon, please refill!

Page 13: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Industry 4.0 enables smart manufacturing in electric car production

Solution Components

All objects and items are interconnected

Assembly parts find their way on their own through production

Redundant manufacturing capacities are autonomously distributing work loads among each other

Benefits

No central control systems required

Dynamic system reaction in case of exceptions

High scalability of all production processes

Source: SMART FACE-Project Consortium (2014).

Supported by

Page 14: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Industry 4.0 enables smart intralogistics

Small autonomous transport units (shuttles) replace inflexible conveyor technology

Cellular transport systems (CTS) follow self-control principle

CTS uses swarm intelligence for handling complex transport tasks.

Autonomous transport management

Increase of:

Changeability

Scalability and Flexibility

Logistics performance where it is required!

Page 15: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Industry 4.0 increases and efficiency in the warehouse

Solution Components

Autonomous navigation in the shelf

No lift needed

Flexible deployment of rack racers

85 percent 3D printed components

Benefits

Functional and cost advantages compared to state-of-the-art

Increased flexibility of storage systems

Reduced fixed costs

No bottleneck through lift, thus reduced storage cycle times

Source: Fraunhofer IML (2014).

Page 16: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Industry 4.0 is a design principle for the industrial enterprise of the future

Industry 4.0

Connectivity

Autonomy

Human-Machine-

Interaction

Virtual Entities

Modularity

Real-Time Capability

Page 17: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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AGENDA

Towards a »Smart Service Welt«

Industry 4.0 and Smart Manufacturing

Data as the Key Resource

Page 18: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Data is the strategic resource to link Smart Services and Smart Manufacturing

Information flow

PublicData

Data from theValue Chain

Commercial

Services

Industrial

Services

Individualization

End-to-EndCustomer Process

Ecosystem

Ubiquity

Smart DataManagement

Interoperability

Human-Machine-Collaboration

AutonomousSystems

Internet of Things

Customer

Production

Networks

Logistics

Networks

Smart ServicesDataSmart Manufacturing

Material flow.Legend:

Page 19: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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The Industrial Data Space aims at a »Network of Trusted Data«

Sovereignty

Data and ServicesTrustworthiness

Certified Members

Decentralization

Federated Architecture

Openness

Neutral and User-Driven

Governance

Common Rules of the Game

Scalability

Network EffectsEcosystem

Platform and Services

Security

Data Exchange

Page 20: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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The Industrial Data Space is driven by industry and supported by the German Federal Government

Chartered Organization Founders Governmental Research Grant

Reference Architecture Model

Use Case Pilot Implementations

Page 21: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Prof. Dr. Boris Otto

Fraunhofer IML & [email protected]

https://de.linkedin.com/pub/boris-otto/1/1b5/570

https://twitter.com/drborisotto

https://www.xing.com/profile/Boris_Otto

http://www.researchgate.net/profile/Boris_Otto

Thank you very much for your attention!

Page 22: Enabling the Industry 4.0 vision: Hype? Real Opportunity!

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Prof. Dr. Boris Otto · Pune · October 7th, 2015

ENABLING THE INDUSTRY 4.0 VISION: HYPE? REAL OPPORTUNITY!